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Last $113.56 USD
Change Today +2.01 / 1.80%
Volume 2.3M
AET On Other Exchanges
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Exchange
Frankfurt
As of 8:04 PM 09/2/15 All times are local (Market data is delayed by at least 15 minutes).

aetna inc (AET) Key Developments

Aetna Inc. Announces Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2015; Revised Earnings Guidance for the Full Year of 2015

Aetna Inc. announced consolidated earnings results for the second quarter and six months ended June 30, 2015. For the quarter, the company reported total revenues of $15,240.9 million compared with $14,509.4 million for the same period a year ago. Income before income taxes was $1,261.6 million compared with $924.6 million for the same period a year ago. Net income attributable to Aetna was $731.8 million or $2.08 per share compared with $548.8 million or $1.52 per share for the same period a year ago. Operating earnings was $722.1 million or $2.05 per share compared with $610.0 million or $1.69 per share for the same period a year ago. Underlying second quarter results are sound operating fundamentals, as evidenced by: record quarterly operating revenue; medical cost trends that remained moderate and drove a healthy level of reserve development in the quarter; a total medical benefit ratio that improved 200 basis points year-over-year; and pretax operating margins of 8.7%, an improvement of 110 basis points over last year's second quarter. For the six months, the company reported total revenues of $30,335.0 million compared with $28,504.2 million for the same period a year ago. Income before income taxes was $2,628.2 million compared with $2,074.3 million for the same period a year ago. Net income attributable to Aetna was $1,509.3 million or $4.28 per share compared with $1,214.3 million or $3.35 per share for the same period a year ago. Operating earnings was $1,566.4 million or $4.44 per share compared with $1,332.0 million or $3.67 per share for the same period a year ago. The company is raising full year 2015 operating EPS guidance to at least $7.40 per share, eliminating the bottom end of previous range and recognizing the potential for meaningful upside in full year outlook, particularly as company contemplate continuing prudent stance on accruing for the 3Rs. The company has revised outlook on full year 2015 operating revenue, which now project to be in the range of $60 billion to $61 billion. Based on strong second quarter results, The company now project full year total medical benefit ratio will be 81.5% plus or minus 30 basis points and that full year 2015 Commercial MBR will be essentially flat when compared to the 2014 Commercial MBR of 80.2%.

Aetna Inc. Enters into Third Amendment to Five-Year Credit Agreement

On July 30, 2015, Aetna Inc. (Aetna) entered into a Third Amendment to the Five-Year Credit Agreement dated as of March 27, 2012 with the various lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent. Pursuant to the Third Amendment, the lenders agreed to increase their aggregate commitments under the Existing Credit Agreement by $1.0 billion, to a maximum aggregate amount of revolving loans and letters of credit outstanding of $3.0 billion. The Third Amendment also modifies the calculation of total debt for the purposes of determining compliance prior to the Closing Date with certain covenants to exclude debt incurred by Aetna or its subsidiaries to finance its proposed acquisition of Humana Inc., the other financing transactions related to the Proposed Acquisition and/or the payment of fees and expenses incurred in connection therewith so long as either (A) the net proceeds of such debt are set aside to finance the Proposed Acquisition, the other financing transactions related to the Proposed Acquisition and/or the payment of fees and expenses incurred in connection therewith or (B) such debt is subject to mandatory redemption in the event that the merger agreement for the Proposed Acquisition is terminated or expires. The effectiveness of the increase in commitments under the Existing Credit Agreement is subject to various conditions precedent including: (i) the consummation of the Proposed Acquisition; (ii) the accuracy on and as of the Increase Effective Date of certain representations and warranties related to Aetna; (iii) termination of Humana's existing credit agreement dated as of July 9, 2013; and (iv) other customary conditions each as more fully described in the Third Amendment. On July 30, 2015, the company entered into a 364-day bridge credit agreement. Under the Bridge Credit Agreement, Citibank, N.A. (Citi) is the administrative agent. In addition to Citi, fourteen other lenders are party to the Bridge Credit Agreement. The maximum aggregate loan commitment of any single lender under the Bridge Credit Agreement is $2.6 billion. Citigroup Global Markets Inc., an affiliate of Citi, also is serving as financial advisor to Aetna in connection with the Proposed Acquisition. Under the Bridge Credit Agreement, Aetna may borrow on an unsecured basis an aggregate principal amount of up to $13.0 billion to the extent Aetna has not received $13.0 billion in net cash proceeds from issuing senior notes or from certain other transactions on or prior to the Closing Date. Any proceeds of the Bridge Credit Agreement are required to be used to fund the Proposed Acquisition and to pay fees and expenses incurred in connection therewith. Any borrowings under the Bridge Credit Agreement mature 364 days after the closing date of the Proposed Acquisition. Amounts outstanding under the Bridge Credit Agreement will bear interest, at Aetna's option, either (a) at the London Interbank Offered Rate (LIBOR); or (b) at the base rate (defined as the highest of (i) the prime rate, (ii) the federal funds effective rate plus 0.50% per annum and (iii) LIBOR for an interest period of one month plus 1.00% per annum), plus, in each case, the applicable LIBOR margin or base rate margin depending upon the ratings of the company's long-term senior unsecured indebtedness. The minimum and maximum LIBOR margins are 0.75% and 1.25% per annum, respectively, and the minimum and maximum base rate margins are 0% and 0.25% per annum, respectively, provided, however, that the applicable margins will increase by 0.25% per annum on the 90th day following the Closing Date and by an additional 0.25% per annum each 90th day thereafter while loans remain outstanding under the Bridge Credit Agreement. Aetna will also pay to each lender on each of the following dates a duration fee equal to the following applicable percentages of the aggregate principal amount of such lender's loans outstanding on such date: (i) 90 days after the Closing Date, 0.50%; (ii) 180 days after the Closing Date, 0.75%; and (iii) 270 days after the Closing Date, 1.00%. Aetna will also pay the lenders certain other fees. On July 30, 2015, the company entered into a three-year term loan credit agreement. Under the Term Loan Agreement, Citi is the administrative agent. In addition to Citi, sixteen other lenders are party to the Term Loan Agreement. The maximum aggregate loan commitment of any single lender under the Term Loan Agreement is $320 million. Under the Term Loan Agreement, Aetna may borrow on an unsecured basis an aggregate principal amount of $3.2 billion. Any proceeds of the Term Loan Agreement are required to be used to fund the Proposed Acquisition and to pay fees and expenses incurred in connection therewith. Any borrowings under the Term Loan Agreement mature three years after the Closing Date. Amounts outstanding under the Term Loan Agreement will bear interest, at Aetna's option, either (a) LIBOR; or (b) at the base rate (defined as the highest of (i) the prime rate, (ii) the federal funds effective rate plus 0.50% per annum and (iii) LIBOR for an interest period of one month plus 1.00% per annum), plus, in each case, the applicable LIBOR margin or base rate margin depending upon the ratings of Aetna's long-term senior unsecured indebtedness. The minimum and maximum LIBOR margins are 0.75% and 1.50% per annum, respectively, and the minimum and maximum base rate margins are 0% and 0.50% per annum, respectively. Aetna will also pay the lenders certain other fees.

North Shore-LIJ Health System and Aetna Sign Agreement to Provide Integrated Health Care to 30,000 New Yorkers

North Shore-LIJ Health System and Aetna announced a joint agreement that covers approximately 30,000 commercial members in a value-based collaboration designed to enhance patient care coordination, improve quality health outcomes and reduce healthcare costs. The agreement features a new payment model to reward North Shore-LIJ Premium providers for meeting quality and efficiency measures, including: the percentage of Aetna members who get recommended preventive care and screenings; better management of patients with chronic conditions such as heart failure; and appropriateness of antibiotic use. Under the agreement, care for Aetna members will be coordinated through North Shore-LIJ Premium IPA, an integrated network of over 5,500 primary care and specialty physicians as well as other healthcare professionals in the New York metropolitan area. Members can continue to use North Shore-LIJ's network of 19 hospitals, more than 400 outpatient practices and a full continuum of long-term care, rehabilitation, homecare, hospice and other services on Long Island, New York City and Westchester. North Shore-LIJ Care Solutions oversees the health system's care management strategy and operations, and coordinates clinical care for high-risk patients who are the intensive users of services. To address the complexity of delivering services across the continuum of care, North Shore-LIJ's information technology team developed innovative electronic care management software called Care Tool. Care Tool is used to support care coordination and outreach for complex, high-risk patients and helps patients meet their health and personal wellness goals.

Aetna Inc. to Report Q2, 2015 Results on Aug 04, 2015

Aetna Inc. announced that they will report Q2, 2015 results at 6:00 AM, US Eastern Standard Time on Aug 04, 2015

Aetna Inc., Q2 2015 Earnings Call, Aug 04, 2015

Aetna Inc., Q2 2015 Earnings Call, Aug 04, 2015

 

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